Many entrepreneurs believe that the moment they get a patent for their invention or product, they instantly will start making a profit. However, just because filing for a patent is a complicated and expensive process, that doesn’t mean having one will become quickly profitable.
Business owners and entrepreneurs need to understand that getting a patent for an invention or product feature is just one step in creating a profitable outcome. You’ll need to evaluate some of the best ways to make a profit with your patent, which could include the following:
- Manufacture a product of your invention or a product that uses your patented innovative features. Before you do this, you’ll need to determine:
- What exactly will your product be?
- What the sales potential for your product is? (Is it needed? Are there competitive products already available? What will make it successful in the marketplace?)
- How long will it take to create the product and distribute it?
You want as much information as you can gather to help define your product and development process. Ultimately, this will help you reduce the time and money you’ll spend bringing your product to market.
- Consider licensing your patent. If you don’t think you or your company can bring your product to market, someone else may be able to. You could license your patent to another company that could produce a product with your patent’s innovations. You could also grant another company exclusive rights to use your patent and collect a royalty for any resulting products the company sells.
- Create a patent pool. Perhaps, you have a patent for a new innovation in producing microchips and find another company that has a patent on a new technology for making more powerful microchips. You could create a patent pool and combine your efforts to find a way to make a profitable product together.
- Sell your patent. If it doesn’t look feasible that your company can produce a product from your patent, you could sell it. By selling your patent, you will get a quick return on your investment in securing the patent.
When you secure a patent, you want to do what you can to actually make a profit on it. You also want to maintain your patent protection if you have a valuable patent being used on a money-making product. Working with an attorney who understands protecting intellectual property through patents can help you ensure you’ve protected your innovations and designs well.